“Gold is the trade which continues to work in the current climate. Long-term it has done likewise, trumping all other classes for the past several years,” Coe wrote. “Today, SPDR Gold Shares (NYSEArca: GLD) has broken out to a new all-time high as SPDR S&P 500 (NYSEArca: SPY) flounders beneath its 2011 highs. A resolution to the U.S. debt ceiling talks will no doubt cause respective reversals in both these instruments, with a correction in GLD and a break higher by the SPY.”
The analyst, meanwhile, called miner stocks “perhaps a middle-of-the-road compromise.”
Full disclosure: Tom Lydon’s clients own GLD and GDXJ.